The world really is a busy and competitive place. If you don’t know what you are doing, you can end up being washed away to the open sea without any knowledge of where you are being swept to. Many end up washed up in the shores of disappointment while some are lucky enough to find shelter in the shores of second chances. That is why you have to know your basics and bare necessities in order to gain some ground in the life long battle for success and glory. And this is why you need to monitor your KPIs to measure success.
A successful business is always defined as something that is measurable and accurate. Important aspects must be kept an eye on always in order to see if a certain sector is performing well enough to meet certain demands and needs. One unmonitored area will create a lot of problems and may be the most important thing that must be fixed. So in order to do that, tools must be used in order to make performance and efficiency much better and be kept at a standard that will fit the tasks at hand.
Key Performance Indicators are very important things to consider when you want results. These facts will help you in knowing what must be improved, maintained, and resolved. And with this, there are tools that you can use to monitor and define your KPIs, but first, you should know which to factors you need to keep track of:
- Customer Acquisition Cost
This will help you define the effectiveness of your marketing and sales strategies. This will also help you in understanding if your ROI is doing good and what needs to be done in order to increase income and decrease expenses in acquiring customers.
- Customer Lifetime Value
You can measure how much a customer will be willing to spend in your business. This is very important since you will be able to calculate the revenue that you will be raking in per customer and see the differences and give priority to those that are willing to give you more revenue. And also you will be able to tell if you are doing enough effort to upsell to your existing customers as well as the probability of them returning to your business.
- Revenue Growth Rate
This is to track how fast or slow your income is coming in. This is vital in predicting the rate of progress you are currently in and can actually tell you what is needed to boost or maintain a specific area of progress.
Now that you know the KPIs that need to be monitored, here are four tools that will surely help you out.
Geckoboard is a software that pulls data directly from programs like Excel Spreadsheets and creates beautiful visualizations of your data plus the most important metrics that you need. Furthermore, it is by far the most simple to set up and extremely user friendly.
Simple KPI is a very simple yet powerful tool in monitoring KPIs. Its wide variations of options and displays allow you to really see through the wilderness of metrics and data including financial, marketing, service, and operational metrics.
Asana is perfect for project management as it is considered to be one of the best KPI project based tools. It uses OKR or Objectives and Key Results for its KPI tracking system and allows the users and administrators to create different kinds of objectives, tasks and goals.
Lastly, Tableau is excellent for monitoring KPI analytics and is packed with templates that you can use to make your KPI tracking easier. It was actually built for retail and ecommerce but has a lot to offer when it comes to KPI.